FAQ: Why Should I Outsource – How Can I Outsource Effectively?

The biggest and most common frequently asked question people ask is “why should I outsource?” The answer is because businesses are looking for a solution to a challenge they cannot efficiently solve in-house. Outsourcing provides resources such as expertise, technology, and specialized service without having to heavily invest.

Overall businesses want to save money while optimizing operational processes and increasing growth and productivity. Many businesses outsource tasks such as data mining, invoice processing, and other various processes. This brings us to the next frequently asked question…

Frequently Asked Question: Does Outsourcing Save Money?

Yes outsourcing saves you money, but there is a lag between the start of the contract and the realization of benefits. If you company needs something done yesterday, outsourcing may not yield the quick benefits you are looking for.

Outsourcing is a strategic move that works as an extension of your team to optimize different processes. Having a clear goal and specifications make it easier for the outsourcing partner to interpret and align with what your expectations are. Communication is also a big piece of the puzzle, helping the adoption efforts of different processes to be smoother.

What Kind of Ramp-up Time can you expect?

How effectively you can engage with the vendor, quality of the vendor’s skills, and how well prepared you are to begin the ramp up for the outsourcing team play large roles.

Ensure everyone is on board and up-to-date. Your focus on outsourcing should not solely be saving money and working faster, but as a strategic investment. Have a clear plan on what needs to be outsourced, an estimate of how much work needs to be completed, your time frame, and budget.

With all of these in play a smooth ramp up can begin; you will start to see the savings in cost and time but also an increase in growth opportunities.

What are Some Common Reasons Outsourcing Fails?

Communicating and working together with your outsourcing partner helps you achieve new goals and increase growth for your business.

While cutting costs is the largest reason many companies choose to outsource processes, it is important to aim for quality and investing in a good relationship. Ambiguity only hurts the process and without proper planning, it is easier for issues to occur.

For Example: You may initially estimate 1,000 invoices, but as the project starts you notice that it is closer to 5,000. This is 5 times the original estimate! Thankfully outsourcing companies are equipped to scale projects to size, but when issues occur it is better to communicate and address them quickly.

Ensuring that both sides grasp the scope of the process is mission critical for success, and often this takes time to gather the necessary information. Good communication also supports the transition process, preventing possible delays and reductions in quality.

The bottom line is: outsourcing brings great benefits for business with proper communication, set expectations, and planning.